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Food prices fell 0.2% in the December month, and were down 1% on a year earlier, Statistics New Zealand says.
In December alone the price of lamb was down 14%, with the lowest prices since February 2009. This was despite a rise of 9% for meat, poultry, and fish category for December, mainly influenced by higher prices for chicken pieces (up 10%), due to less discounting.
In the December month, fruit and vegetables rose 0.7%. Seasonal rises in apple (up 14%), potato (up 13%) and kiwifruit prices (up 28%) provided the main upward contributions. The main downward contributions came from seasonal falls in tomato (down 30%) and broccoli prices (down 31%). Tomato prices often fall in the spring and early summer months. They have fallen 30% or more in each of the past three months and are now 75% lower than their off-season peak in August 2012.
Annual movements
Shifting the focus to annual from monthly price changes, the food price index (FPI) decreased 1% in the year to December 2012. Grocery food (down 3.6%) made the main downward contribution. Significant individual contributions came from fresh milk (down 9.4%), cheese (down 8.2%), and bread (down 4.2%).
The price of lamb decreased 24%, which is the largest annual fall since the series began in January 1989. Takeaway pizza prices also decreased (down 12%).
For the year to December 2012, fruit and vegetables (up 6%) made the main upward contribution. Kumara (up 109%), avocado (up 107%), apple (up 20%) and pumpkin (up 32%) prices all increased.
High kumara prices were influenced by poor weather conditions in both the planting and harvesting seasons, which affected the crop in 2012. Avocados enjoyed a bumper season in 2011, with a large quantity available on the market. Avocado harvests follow a two-year pattern, with a smaller crop every other year.
The FPI measures the rate of price change of food and food services purchased by households. Statistics NZ visits shops across New Zealand to collect prices for the FPI and check package sizes.
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